The Future of A<jrieuUural Competition. 751 
accamalated in Russia. There were excellent crops also in the 
other principal producing countries of Europe in 18S7 and 
188S. and in India in the latter year. In 1589 Europe had a 
poor harvest on the whole, though France was fortnnate, and 
hopes of improved markets revived : but the American crop was 
a great one. while reserves of old wheat in Russia proved to be 
much greater than they had been supposed to be. Still, reserve 
stocks in Europe became small by the end of the cereal year 
1889-90, and the harvest of 1890 in America was a very poor 
one. Again, however, Europe produced a large crop, France 
having the greatest on record, and Germany, Hungary, and 
Italv much above average. Thus, during a time when, under 
ordinarv circumstances, the growth of wheat iu the world would 
not have been sufficient to provide the people with bread, an 
exceptional sequence of productive seasons prevented scarcity. 
At the end of the last cereal year, however, reserve stocks of 
wheat in the world were probably lower than they have been 
before in the memory of the oldest living member of the grain 
trade, and, in spite of the phenomenal crop of the United 
States, and extra produce in India and Canada, the extreme 
shortness of the wheat and rye crops of Europe (rye counting 
with wheat as a bread-stuff; has sent prices np considerably, 
and win probably enhance them in much greater degree before 
next summer. 
Two other points must be mentioned in explaining why 
prices kept low throughout a period of diminishing supplies of 
wheat in proportion to constmiption. One is the almost entire 
cessarion of legitimate specnlarion in England and America, so 
£ar as it consists in holding stocks of wheat ; and the other is the 
rapidity with which, by means of the electric cable and fast 
steamers, grain can be conveyed fix»m one country to another. 
Under the comparatively new system of time-bargains millers 
and merchants have no need to accumulate stc-cks. as they can 
purchase at a fixed price, for delivery months hence, any 
quantity of wheat which they require. They thus insure 
against any sudden and great advance in values due to tempo- 
rary scarcity. They can, and do to a great extent, in America 
especially, transact their business on the system of the racing 
bookmaker, by trading in '■ options," and paying or receiving 
" margins,"' when they do not desire to deliver or receive grain. 
And if at any time receipts of wheat in this or another import- 
ing country are falling off, the telegraph at once conveys the 
news to exporting countries, and steamers laden with grain are 
quickly on their way. These agencies tend to level prices, and 
to keep them at a low level in periods of comparative scarcity. 
